B2B Marketing Blog

close
Written by The Mezzanine Group
on March 16, 2010

In his recently-posted annual letter, Warren Buffett provided his take on the best way to run a large organization -

"We tend to let our many subsidiaries operate on their own, without our supervising and monitoring them to any degree. That means we are sometimes late in spotting management problems and that both operating and capital decisions are occasionally made with which Charlie and I would have disagreed had we been consulted. Most of our managers, however, use the independence we grant them magnificently, rewarding our confidence by maintaining an owner-oriented attitude that is invaluable and too seldom found in huge organizations. We would rather suffer the visible costs of a few bad decisions than incur the many invisible costs that come from decisions made too slowly – or not at all – because of a stifling bureaucracy."

Buffett is saying that allowing managers to make mistakes is a better way to manage than a command-and-control organization where mistakes are few. The result – a lot of confidence rather than fear in Berkshire Hathaway managers. Something that most public companies aspire to, but have a very hard time achieving.

The rest of the letter was a good read... and full of the folksy wisdom and one-liners that Buffett is known for. Have a look.

You may also like:

7 Questions about B2B Marketing Book 'Walking on the Moon'

Mezzanine’s founder Lisa Shepherd has just released her third book called “Walking on the Moon”, a business fable about ...

Baseball to B2B Marketing: 3 Lessons on how to generate success

For fans of the Toronto Blue Jays, August 2015 was a month for the history books. And now they’ve won the series opener ...

Should you Replace Your Weak Sales People With Marketers?

This article originally appeared on B2B News Network. Cold calling - a thing of the past? One of the questions we were a...